Question
Co F produces three products: North South West Total Sales 1,280 185 300 1,765 Var expense 1,115 45 225 1,385 Contrib margin 165 140 75
Co F produces three products: North South West Total Sales 1,280 185 300 1,765 Var expense 1,115 45 225 1,385 Contrib margin 165 140 75 380 Fixed expenses Depreciation $50 $15 $10 75 Salaries $95 $85 $80 260 Product margin $20 $40 ($15) $45 Depreciation on equipment is unique to each product and can not be sold Should West be elininated under each option provide math option a) each company has a different supervisor who remains with the company b) each company has a different supervisor who position is eliminated if product is dropped c) each company has a different supervisor who position is eliminated if product is dropped however this results in a 20% decrease in sales in the North company
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